RCAF: Rail Cost Adjustment Factor
A federal index used to escalate or de-escalate Class I rail freight rates over time.
The Rail Cost Adjustment Factor (RCAF) is published quarterly by the Surface Transportation Board and measures changes in U.S. Class I railroad operating costs (labor, fuel, materials, equipment). Rail contracts and tariffs commonly include RCAF clauses that automatically adjust pricing as the index moves. Two versions exist: RCAF-A (adjusted for productivity) and RCAF-U (unadjusted).
Who publishes it
U.S. Surface Transportation Board (STB), quarterly.
How to read it
- Published as an index value with 1980 = 100 as the base.
- RCAF-U tracks raw cost changes; RCAF-A subtracts the long-run rail productivity trend (roughly 1–2% per year).
- Most modern rail contracts use RCAF-A so shippers don't pay for productivity gains carriers already capture.
Why it matters
RCAF is the single most important number in long-haul rail and intermodal contract economics. A 2% RCAF-A increase quarter-over-quarter typically translates into a 2% line-haul rate bump on indexed lanes — that's millions of dollars on a large bulk or intermodal book of business.
Frequently asked questions
What does RCAF stand for?
Rail Cost Adjustment Factor — a quarterly index from the Surface Transportation Board that tracks Class I railroad operating costs.
What's the difference between RCAF-A and RCAF-U?
RCAF-U is unadjusted (raw cost change). RCAF-A is adjusted for the long-term rail productivity trend, so shippers don't pay for efficiency gains the carriers already realize.
Where can I find the current RCAF?
The Surface Transportation Board (stb.gov) publishes RCAF-A and RCAF-U quarterly under its rail cost recovery decisions.
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